Why not print money till debts get zeroed out.

Discussion in 'Economics' started by noob_trad3r, Sep 12, 2011.

  1. If the problem with the economy is due to the large debts Americans are in, and the banks.

    What if the US prints a special dollar that can only be used to pay debts.

    Print enough to cover all debts.

    Then the banks can take this debt denominations and give it to the Federal reserve, then the banks get credited in regular dollars.


    Inflation would not go up since what you did was turn.

    -1,000,000,000

    into 0.00

    the black hole absorbed the new cash till it hits zero.

    so you don't have new money circulating just removal of debt.
     
  2. Lucrum

    Lucrum


    <a href="http://s306.photobucket.com/albums/nn245/marie01_08/Smileys%20and%20Stuff/?action=view&amp;current=AnimatedRollingEyesSmiley.gif" target="_blank"><img src="http://i306.photobucket.com/albums/nn245/marie01_08/Smileys%20and%20Stuff/AnimatedRollingEyesSmiley.gif" border="0" alt="Animated Rolling Eyes Smiley"></a>
     
  3. schizo

    schizo

    In the time you write this gibberish, you really should do some serious reading. The government doesn't monetize its debt simply by turning on the printing press, ya dummy!
     
  4. Have you ever heard the ole "there's no free lunch" saying?
     
  5. Noob,

    debt means that party X loaned money to party Y. To say printing the money takes -1,000 to 0 with no inflation is false. If we printed the money that we're indebted, that money actually transfers to party X. So the supply of money just grew by that factor, which is beyond uber-inflational.
     
  6. Some would argue in a way that is what they are doing.
     
  7. schizo

    schizo

    Exactly. We're doing just that: exporting our inflation to others like China.
     
  8. If you were the one owed money, would you accept a monopoly currency like that as repayment?

    I wouldn't.

    And I sure as heck wouldn't agree to lend *more* if someone tried to force it on me.
     
  9. Not to mention the demand mechanism does not work as "efficiently" as it used to due to paying debt down.
     
  10. The us could start issuing greenbacks again and bypass the whole federal reserve thing. :D
     
    #10     Sep 12, 2011